Dubai Considers Parking Fee Hike Amidst Shift to Demand-Based Pricing
DUBAI, United Arab Emirates – Motorists in Dubai could face increased public parking charges as early as 2026, following a proposal submitted by Parkin, the emirate’s largest paid parking operator, to the Roads and Transport Authority (RTA). The proposed revision aims to recalibrate tariff structures following the introduction of a variable pricing system in April 2025, and requires final approval from the Dubai Executive Council.
The move reflects a broader trend in global urban centers towards dynamic pricing for parking, designed to manage congestion and optimize space utilization. Cities like London, Singapore, and San Francisco have implemented similar systems, often leveraging technology to adjust rates based on real-time demand.
Parkin’s proposal comes after a significant shift in driver behavior following the implementation of the variable tariff. Previously, the weighted average public parking tariff stood at approximately Dh2.01 per hour in 2024. The new system saw that figure jump to Dh3.03 per hour in 2025 – a 51% increase. However, this prompted a surge in the purchase of seasonal parking cards, offering better value for frequent users. Sales of these cards rose by approximately 140% in the fourth quarter of 2025 alone, reaching over 89,000 active permits.
“The changes seek to maintain long-term discounts for regular users while ensuring pricing better reflects actual demand and usage patterns,” Parkin stated. The company argues the recalibration is necessary to address imbalances created by the popularity of seasonal passes and ensure the sustainability of the parking system.
The proposed adjustments, if approved, are likely to impact hourly rates in high-demand areas, particularly commercial and residential zones. However, the RTA has assured residents that the proposal will undergo careful assessment before being forwarded for government approval.
Parkin’s financial performance demonstrates the success of the variable tariff system and expansion of paid parking zones. The company reported revenue of Dh389.4 million in the fourth quarter of 2025, a 47% year-on-year increase. Net profit for the same period rose by 53% to Dh183.6 million. For the full year, revenue reached Dh1.32 billion, with an annual net profit of approximately Dh625.5 million.
Looking ahead, Parkin plans to add between 5,500 and 7,500 new parking spaces in 2026, projecting public parking revenue between Dh560 million and Dh610 million. This expansion is supported by the implementation of smart license-plate recognition systems to improve compliance enforcement.
The evolution of Dubai’s parking system underscores the city’s commitment to innovative urban planning and traffic management. As Dubai continues to grow and densify, efficient parking solutions are crucial for maintaining mobility and quality of life. The RTA’s assessment of Parkin’s proposal will be a key indicator of the future direction of parking policy in the emirate.
[Image of Dubai parking – sourced from original article]
RTA considers tariff hike as Dubai parking fees face 2026 increase.